Key facts
- Russia's annual inflation rate decreased to 2.4% in April.
- The inflation rate is below the Central Bank of Russia's 4.0% target.
- Disinflation was observed across all economic segments.
- A strong ruble and the exhaustion of the VAT effect contributed to the decline.
- The data supports the possibility of a larger interest rate cut in June.
Russia's annual inflation rate experienced a notable decline, reaching 2.4% in April. This figure is substantially below the 4.0% target set by the Central Bank of Russia (CBR). The disinflationary trend was broad-based, impacting all segments of the economy. Factors contributing to this decrease include the strength of the Russian ruble and the fading impact of a previous value-added tax (VAT) increase. These results suggest that the CBR may consider a more significant interest rate cut in June, although the central bank will likely await May's economic data before making a final decision.